Many taxpayers ignoring phone refund, IRS says

More than a third of early tax return filers are not requesting the one-time telephone tax refund entitling them to at least $30, the Internal Revenue Service said Wednesday.

The IRS notice about mistakes in requesting the refund came a week after the tax agency sent out a warning that it would take action against taxpayers and tax preparers who improperly claim large refunds from the discontinued tax.

The government last August stopped collecting the long-distance excise tax, and has authorized a refund of tax collected on service billed during the period from March 2003 to July 2006.

Those claiming a standard refund amount, which needs no documentation, will receive $30 to $60, based on the number of exemptions they claim. People making claims on the actual amount paid over the 41-month period need not send records to the IRS, but should have documents to back up their claims.